public engagement office is helping project office of cuban occasions, i am sorry, they get the psa's out to the television and radio. >> commissioner norton, did you get your questions answered? ok, thank you. are there any public comments? public comment? ok. well, public comment is closed. ok. thank you everyone who came to participate in the discussion. madam clerk, are there any other agenda items? ok, thanks. this meeting is adjourned. thank you.

>> about four years ago, [inaudible] look at how beautiful this was. there is our relationship to the planet. these regions are the wealthiest, the most powerful. that really has impacted the planet. it is almost impossible now to go anywhere and had it really be completely dark. there are very few locations that you can find. that means our relationship to the sky, there is a way where we

dominate the sky. we cannot see anything really. we are blinding ourselves in a way. >> you can look at the images, they are beautiful. when i started four years ago, there was a conversation about environmental issues that was very different. this is not being talked about in the way it is now. . this has just been like an amazing growth.

i anticipate the project to be something that opens a dialogue to public interest in these ideas. so the work is really made to be seen in this environment. it's been show in museum, in gallery, but never in a public setting. and it's kind of ideal for both myself and the works to have this real dialogue with the public not only in san francisco but people coming from all over the world. >> since the dawn of electricity, that light is something that people feel connected to and inspired by. personally, there is space to keep that alive, just finding balance. the key is to find some balance.

>> meeting called to order. roll call. [roll call] item two, approval of minutes for the january 11, 2011 meeting. >> so moves. commissioner crowley: second. >> all in favor? >> aye. >> item 3, public comment on executive session. any public comment?

the motion to >> move to disclose that the commission voted to -- in support of the settlement and move not to disclose any other items discussed in executive session. >> second. >> all in favor? >> aye. >> item six, please be advised that the ringing of and use of pagers and similar sound- producing electronic devices are prohibited at this meeting. be advised that the chair may order the removal from the meeting room of any persons responsible for the ringing or use of a cell phone, pager, or other similar sound-producing electronic device. is that a member of the public has up to three minutes to make pertinent public comments on each agenda item unless the commission adopts a shorter time

on any item. item 7a, executive directors report. >> good afternoon. thank you for joining us today. >> i have a very brief executive director's report, but it is laced with sad news. this young man here has decided to retire after 25 years as a city and county of san francisco employee, 23 and a half of which he spent at the port. i have to share a story about when john worked with dpw, he was the in house, for city hall, and he became the mayor's personal plumber by fixing the shower in his personal office. so he could jog -- the mayor, that is -- at launch. john worked his magic and fixed it for the good mayor -- i hope

the good mayor still jogs. do you happen to know? anyway, that is how he got his start, and from there, he moved up to the port and work on an old tugboat -- i did not know we had a tugboat, so that was news to me -- until it was the commission. -- until it was decommissione d. he worked at the port's for maintenance yard, which is now with a giant ball park sits. john worked on the old divers and cut the steam systems operating so that the files could be driven down. remember how long -- how young he looks for some of this. it is pretty amazing. he was here when the embarcadero had a half-dozen railroad tracks and the sea wall lot still had cars on them. in the earthquake came and brought down the freeway, and john help the port get back on its feet.

i love this part. john lived through the three transportation projects that transformed the embarcadero to its current palm tree-lined boulevard. he has worked on the big water main at pier 80, which we relocated for rail tracks out there. this is my absolute favorite part. john has worked underneath every pier that the port maintains, repairing broken water mains and sewer piping. sir john's retirement is very well deserved, but i'm loath to let him go, so congratulations, and more importantly, we accept all our gratitude for having served us so well because everything is still working beautifully. please come back often. congratulations. [applause] >> we also have a beautiful

plaque that says john, in appreciation of your 25 years of hard work and dedication at the port of san francisco, march 1986 to march 2011. >> congratulations, john. >> you get your picture taken. [laughter] >> [inaudible] >> i think so. i think we have a few that would like to speak if that is okay. >> [inaudible] >> roshambo? >> [laughter] >> i'm superintendent for maintenance.

john has worked with me for the last 23 and a half years. a few things that i do have to say is one, thank you for all the hard work and dedication. two, his expertise and knowledge -- his institutional knowledge is going to be sorely missed here at the port. we are losing a good man. much appreciate everything you have done. thank you. [applause] >> i'm the point for men at the port of sanford cisco. john has been with me for the last 18 and a half years. he has helped me out. he runs the shop when i'm not there. he has been a good friend. thank you very much. [applause] >> i appreciated, and i have only been here six years, but john always step in with a smile in very difficult times under the pier, supervising at the

same time. just a pleasure to work with, and i wish him all the best in the future, and thank you very much. [applause] that it has been a pleasure to be here today. appreciate everybody's comments. thank you. >> thank you. >> thanks a million, honestly. we look forward to [inaudible] right? that is coming up. next, i wanted to report on the annual warm water cove park garden spring cleaning, which took place on january 22, a couple of weeks ago. as you probably recall, that was a collaboration between the green trust san francisco and port maintenance. a coordinated a wild flowers seating event -- seeding event.

my thanks to everyone in maintenance, and particular, to our gardens staff and especially rachel and dan, who helped on the day of the event. our neighbor helped by painting up some graffiti on their fins building, and they have been doing that now for a couple of years. and trans bay cable, our tenant, took down their fencing and cleaned up along their property line, which was very helpful. donations were received from many. recology donated compost soil. is in a cafe donated coffee. transbay cable donated funds for the purchase of native plants. for our kraft garden center donated end of season native and drought-tolerant plants, whatever those are, and mr. and mrs. miscellaneous ice-cream donated free ice-cream for all

that showed up. it was a terrific event. we see some thank you notes from the community, and the community turned out in great force, and is a wonderful place to go, so we are very pleased about that, and again, my thanks to everyone for that. >> [inaudible] >> i know. i figured as much. ok, and back. shall we move on? last week, i guess it was, on february 3, the san francisco maritime museum did a somewhat soft grand opening. you may recall that they have been closed for a while doing a 15 million-dollar museum and grounds for renovation. this is the san francisco quite museum out of maritime park. the museum was established in 1951, so it has been now refers. it is absolutely gorgeous, using the nicely redone, so the event

last week was to promote itself to all kinds of the event planners, because it is going to take a while longer for the exhibits to be built out, so the facility is available for rental, and i have to tell you, it is going to be an amazing spot to watch anything related to the america's cup, so i think they will do very well. but if you get a chance to get in and see it, it is worth seeing. wonderful. very proud, and congratulations to them from all of us. later this week on thursday is the annual fishermans wharf merchants association dinner and silent auction. this is 8 already, so this is their eighth anniversary. this year, the restaurant out at the end of pier 39. it will begin at 7:00 p.m. as i said, thursday, february 10. the merchants association is honoring the family for their contributions to the rich

history of fisherman's wharf. as you may recall, mr. simmons was very connected with pier 39 and very much involved in the development of pier 39, and his family currently owns and operates the restaurants, so it is a big loss to see him pass away. we look forward to remembering him. finally, a former port staffer, nick larocca passed away. he was only 64. as you may recall, it was not that long ago that he retired from the port. barely over two years. he has unfortunately move back to new orleans and passed away just a couple of weeks ago. he had been set for quite a while, so he was thankful receiving pretty good care once he passed. briefly, just to remind you, and expense 17 years with the board of san francisco.

he managed many of our commercial maritime peers. everything from cruise ships to fishing boats, navy ships, etc. he was previously the port agent and had been a merchant marine and recently located. he was renowned for his love of lsu football, which was as alma mater, we apparently played the trumpet -- i have not heard that before -- and he was fanatical about the roman culture and loved to cook anything roman and would regale us with great meals he had cooked. and was considered a great friend by all, so we are all very sad to see him go, and we hope he is in a better place, and we still miss him terribly. so, wanted to let you know that he had passed on. that is it. >> is there any public comment on the executive director's

report? >> item on the consent calendar. request authorization to advertise for competitive bids for the round house 2 hvac retrofit project. >> so move. >> second. >> any public comment? all in favor? the resolution has been approved. >> item 9a, requests approval of resolution to -- authorizing the port executive director to execute a memorandum of understanding with the comptroller of the city and county of san francisco to reimburse the port for revenue lost due to the hosting of the 34 america's cup and for race- related costs. >> good afternoon. deputy director at administration and finance. this item is a request for approval of the resolution authorizing the executive director to execute a memorandum of understanding between the city controller and port commission. 30 for the america's cup will

generate significant benefits to the region. $1.4 billion of economic activity, and at least $19.5 million in additional tax revenue and 9000 jobs. early on in the city's work to secure the event, we recognize that the economic benefits would not be confined to the port but would instead accrue to the city overall. in light of the costs that would accrue to the board, the mayor's office proposed and the board of supervisors approved in principle the city's use of general fund an america's cup organizing committee to reimburse the port for lost revenue to reduce the project shortfall in the first phase of cruise terminal projects, and to fund the port's of the project costs. the proposed mou memorializes the agreement. it provides for the reimbursement of lost event, which, based on our estimates, will total $6.7 million over

three fiscal years. the payment is structured to neutralize any effects of the america's cup on our rental revenue, while reducing for the liability. since the revenue from relocated tenants and increases in percentage rents will be a reduction in the city's payment to the board. because the mou relies on charter section b73.3.20, the payment in lieu of rent is essentially a budgetary set aside once it is approved. it provides for the new contribution to the cruise ship terminal, which i mentioned briefly. the project is also planned for newport debt. as previously reported, this project with a shortfall. we are picking up with dpw and other city agencies to understand the project financing

plan and the context for america's cup. the proposed mou represents one avenue to address the shortfall, and it is a good start. it also provides a contingent on being further for expenses. as previously reported, we estimate there will be costs, and it states that these costs will be reimbursed, paid by private funds to the extent such funding is available. thebes acoc has pledged to -- the acoc has pledged to raise $32 million. it should be noted, and the report goes over this in some deep, that the payment in lieu of rent are not intended to reimburse the corp. for read lost after the event is completed, as a result of the legacy leases. these legacy leases will result in an ongoing for revenue, and will consequently reduce our debt capacity between

$20,000,000.34 $0.3 million, depending on the site. we will be deploying several strategies to rebuild the debt capacity for the imported products described in the report, including additional operating expenses, programming our existing capacity to fund the most economically viable project, and also looking for other public investments. staff recommends the commission approve the attached resolution with one amendment, the final clause. please try in consultation with the city attorney. the commission secretary has provided a copy of the revised resolution. legally, this is a fair proposal to deliver this really important project to the region. thank you, and i'm getting answer any questions. >> is there any public comment?

questions or comments? come on up. >> thank you. my name is dan chao. i'm an employee of the due to a group. some of you may be aware that it is the marine construction and dredging firm that is possible for some of the waterfront maintenance dredging. we also are pleased that we will be responsible for we bit -- rebuilding west marina, another city project, which ties in with the america's cup. the reason i wanted to come to the microphone is that the -- i realize the central issue is the agreement between the city and port, with respect to the issue of potential revenue loss. to a certain extent of being a

contractor, we think of revenue loss in terms of down time associated with repairs and improvements, and to the extent that that is something that bears on down time, i would like to get a clarification as to what the process will be in terms of the port's review and consent of the various activities, which may lead to some of this revenue loss. i'm not sure who can come into that, but anyhow, that is my inquiry. thank you. >> thank you. >> did you want me to comment on that? ok. i understand the question correctly, you are asking us if we will be involved in the decisions that affect the loss

of revenue to the port. the answer to that is yes. we have already been involved in the negotiation of the host city agreement. much of those revenues are from the use of port assets, which will be part of the leases for the event, or the long term development leases, if they go forward at a later date, so both the port commission will be approving those venue leases and long-term development to the extent that the charter is triggered. the board supervisors will also be approving them. i just want to underscore that what is in the staff report and what is contemplated by the mou -- they are approximations and/or estimates at this point in time, but there is a mechanism identified for which actual numbers would be analyzed and offset, frankly, by revenues we burned.

that is there any other public comment? all in favor? resolution 1105 has been approved. >> item 9b, informational presentation of the port's proposed biennial operating budget for fiscal years 2011- 2012 and 2012-2013. >> good afternoon. this is the port's second biennial budget, and they do need to let you know that staff treated the approved budget from last year as a baseline and looked to all the news of the current year and made recommendations to respond to those needs. i'm going to start with describing the first year of our proposed operating budget. overall, staff is proposing modest revenue growth. a revenue budget of $2.2 million

more than in the current year, and this includes $500,000 for shoreside power, which is requested in the same amount on the expenditure side. this is a lower estimate of revenue growth than our recent trend. i do have a slide that demonstrates the drivers of our revenue growth. first and foremost, parking revenue estimates resulting primarily from the parking meter stations that accept credit cards as a driver of the growth. harbor services because of a new lease agreement with the sf bar pilots. carter, crews, and fishing revenues have positive estimates due to the likely retention of our vessels. increased costs, and from adjustments in dockage and fishing industry events.

this is offset by a reduction in the commercial industrial rents. this is a result primarily in fiscal year 2011-2012 of planned vacancies. notably, projection decreases in our base rents. increases in our percentage estimates based on current actuals, and this is really good news. it is a great trend for us to see because it is a great indicator of improved economic climate for our retail tenants, which certainly will be continued under the proposed 34th america's cup project. >> the commercial rents make up almost 60% of revenue, and if approved by the board of supervisors, it will improve those terms to increase percentage rents above the base